With the first half of 2010 behind it, banking transaction solutions developer Fundtech Ltd. (Nasdaq: FNDT; TASE: FNDT) feels secure enough to again raise its full-year guidance. It now expects revenue growth of 18.8% over 2009, and net profit growth of 74.5%.
Fundtech posted $34.8 million revenue for the second quarter, 23% more than the $28.3 million for the corresponding quarter of 2009, and 4% more than for the preceding quarter. The company closed 107 new deals and added eight new bank customers during the second quarter.
GAAP-based net profit quadrupled to $2.4 million ($0.15 per share) for the second quarter from $545,000 for the corresponding quarter. First half profit was $3.8 million. Non-GAAP net profit doubled to $3.6 million ($0.22 per share) for the second quarter from $1.8 million for the corresponding quarter. Non-GAAP net profit was $6.1 million ($0.38 per share) in the first half.
Fundtech had $55.3 million in cash at the end of June, after a positive cash flow of $20.6 million in the first half of the year.
Fundtech CEO Reuven Ben-Menachem said, "Second quarter revenues and operating income set a new record high for us and 2010 is shaping up as a strong growth year in terms of both the top line and the bottom line." He added, "Our increased guidance indicates that we expect strong demand to continue, especially for our main growth engine: Global PAYplus."
Fundtech's raised its full-year guidance to $138-140 million from $135-137.5 million. It predicts GAAP earnings per share of $0.51-0.57 ($7.2-8.2 million) and raised its non-GAAP earnings per share to $0.79-0.85 ($12.7-13.7 million) from $0.68-0.75.
For the third quarter, Fundtech predicts non-GAAP earnings per share of $0.21-0.25 on $35-36 million revenue.
Fundtech is controlled by Clal Industries and Investments Ltd. (TASE: CII), a unit of Nochi Danker-controlled IDB Holding Corp. Ltd. (TASE:IDBH). Fundtech's share price rose 3.5% at the opening on Nasdaq today to $12.70, giving a market cap of $192 million, and rose 4.9% on the TASE today to NIS 49.71.
Published by Globes [online], Israel business news - www.globes-online.com - on August 4, 2010
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